Co-working space startup Cove has raised $3.4 million in a convertible round from a mix of previous investors and announced the hiring of former LivingSocial vice president Nick Stafford as COO. The new funding will go toward adding to the list of Cove locations, which is up to 11 in the Washington, D.C. and Boston area since it launched two years ago.
"Really for me the raise a good testament to the partners we have," Cove CEO Adam Segal told DC Inno in an interview. "The support they're showing is really great."
It's a lot of money for the company though, more than all of the $2.8 million it has previously raised. Segal wouldn't say who the investors were for the round, but did say that it likely won't be the only money Cove raises this year.
"The intent is we're going to go out in the fall and raise more," Segal said. "We want to have the setup for expansion and scaling in place when we pilot new cities next year."
Ahead of those pilots, Cove has another two locations set to open this year, both in Boston. Cove has a generally casual approach to co-working. There's the usual shared space with Internet access along with coffee, reservable conference rooms and so on, but it offers the option of paying for just a handful of hours as well as a monthly option. Cove caters to a mix of small startups, independent contractors and students looking for somewhere to study that isn't either where they live or just a coffee shop.
As it expands, Cove is playing with new ideas. In Boston, Cove is teaming up with the popular Barismo coffee shop in Kendall Square, while the 7th Street location in D.C. is trying out an enterprise system where companies whose employees usually work at home can buy hours at Cove for their employees.
"We have a different approach from other places, more local, smaller spaces," Segal said. "That draws a lot of people in."
